The average price per square meter of newly constructed apartments in Mongolia's capital reached 3.2 million Mongolian Tugriks (1,028 U.S. dollars) at the end of April, up 19.7 percent year on year, data released by the country's National Statistics Office (NSO) showed Tuesday.

Meanwhile, the average price per square meter of an old apartment in Ulan Bator stood at 3.01 million Mongolian Tugriks (967.5 U.S. dollars) at the end of last month, up 25.5 percent from the same period last year, the NSO said.

The significant increase is largely related to the spike in freight rates due to border restrictions caused by the COVID-19 pandemic, and the ongoing Russia-Ukraine conflict, according to NSO experts.

Housing is one of the most pressing issues in Mongolia, especially in the capital city, home to over half of the country's population of 3.4 million. More than half of Ulan Bator's residents live in the city's ger districts, with no running water, central heating or sewerage systems.

Mongolia reported 77 new COVID-19 infections, according to the country's health statistics database as of May 17.

59 of them were found in Ulaanbaatar, and 18 cases were detected in regions of the country.

1 new linked death was reported during the past day, the death toll grew to 2,114.

President of Mongolia U.Khurelsukh is working in the country’s farming region, and holding meetings with representatives of entities in the farming sector.

In aims of fully meeting domestic demands for the 19 types of main food products and accelerating the development of animal husbandry and farming in the country, the President of Mongolia recently initiated a national movement on food supply and safety.

In the framework of his working trip, the President became acquainted with the operations of ‘Mongolian Green Farmer’ LLC. Established in 2015, the company’s main operations include storage, sales, and rental services alongside the sales of meat, meat products, and vegetables.

Equipped with fully-automated technology and equipment, the company’s warehouse has a capacity to store 1,500 tons of meat and frozen products and 1,500 tons of fruits and vegetables. It is being planned to construct a warehouse with a capacity of 45 thousand tons in Ulaanbaatar city, introduced Executive Director Sh.Gurragchaa.

During the visit, CEO of Mongolian Warehouse Trade Association D.Erdenesaikhan also noted the necessity of long-term loans with low interest rates for entities that run warehouse operations.

Mongolia currently imports about 40 percent of its vegetables, which amounts to about 70 thousand tons.

By building a warehouse that has a capacity of 50 thousand tons, there are certain advantages such as harvests to be sold at reasonable prices, and for vegetable farmers to have a better estimate of their income and profits in autumn. In turn, this would create the appropriate conditions for imports to decrease, the prices of food products to stabilize, and household farming to develop, providing healthy food for people.

President of Mongolia U.Khurelsukh expressed that the state will provide comprehensive support for the sector’s operations.

Steel industry’s carbon emissions are expected to fall 30% by 2050 compared to 2021 levels, according to a new report by Wood Mackenzie.

Steel is a challenging sector to decarbonise. However, evolving green steel goals are altering the supply landscape and steelmakers are under pressure from stakeholders to reduce their reliance on conventional (highly polluting) blast furnace route and adopt low-emission alternatives.

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“The global share of electric arc furnace (EAF) in steelmaking is rising with policy shifts and increasing focus on scrap use. Basic oxygen furnace (BOF) output will decline 0.5% annually until 2050, whereas EAF output could increase 2.3% yearly in the same period. By 2050, EAF will account for 48% of the technology share used in steelmaking, up from 30% last year, making it almost on par with the traditional BOF method,” Wood Mackenzie research director Malan Wu said.

“Together with green hydrogen-based direct reduced iron (DRI), scrap use and adoption of carbon capture, utilisation and storage (CCUS), steel industry’s carbon emissions can decline 30% from current levels by mid-century.”

The scrap-EAF route is the least polluting among available technologies. This makes scrap a sought-after metallic by steelmakers. Scrap blending will potentially increase in the blast furnace route with quality enhancements and converter retrofits. DRI will also receive a boost, primarily due to commercial adoption of the hydrogen-based route.

The steel industry is expected to commence hydrogen use as early as 2027, with EU taking the lead. Hydrogen-based steel production will eventually account for 10% of the total steel output or 232 million tonnes (Mt) by 2050. Wood Mackenzie projects that 40% of DRI produced by mid-century will be hydrogen-based.

Carbon offset measures such as CCUS will lend further support. Wood Mackenzie believes that the steel industry will be able to capture, store and potentially utilise around 178Mt of the residual emissions. This will make up 5% emission savings of the 30% carbon emissions decline by 2050.

“Blast furnace gas emissions are complex, and it is challenging to separate carbon from them,” Wu said. We assume that technological advancement and bulk efficiencies will allow a maximum capture rate of about 20-25% in advanced economies such as the US and EU.”

“Capture rates can be improved by increasing the reliance on smelting reduction technologies such as HIsarna and Corex, that produce top-gas with much higher carbon concentrations. This will make it easier to separate carbon from other impurities. However, these technologies have yet to prove their commercial viability, even after being deployed in Asia and Europe.”

China is expected to take the lead in reducing absolute emissions. Wood Mackenzie estimates Chinese emissions to halve between 2021 and 2050, and a major proportion of emissions reduction will come from the projected fall in steel output.

Mature economies such as Japan, Korea, Taiwan, EU, UK and US will need to do more to curb emissions as developing nations will be slow adopters and small contributors to emissions cuts. These economies will abate emissions by nearly 50% from current levels while maintaining or increasing their steel output.

India and Southeast Asia will in turn worsen their emission profile as their crude steel production rises through the BF-BOF route. The aggregate emission intensity in these regions will improve as production triples and carbon emissions will in turn double from current levels. Decarbonisation initiatives in these regions will intensify in the second half of the forecast horizon.

“The onus will be on mature economies to decarbonise quickly. These economies will look to pare down emissions by switching to EAF, which is three-quarters less emission-intensive than the blast furnace route,” Wu said.

India and Southeast Asia, the key demand drivers, will buck this trend as most capacity additions are via the BF-BOF route. However, nearly two-thirds of incremental supply between 2021 and 2050 will materialise from India and Southeast Asia – cushioning the negative impact on hot metal.”

McDonald's has said it will permanently leave Russia after more than 30 years and has started to sell its restaurants.

The move comes after it temporarily closed its 850 outlets in March.

The fast food giant said it made the decision because of the "humanitarian crisis" and "unpredictable operating environment" caused by the Ukraine war.

The opening of McDonald's first restaurant in Moscow in 1990 came to symbolise a thaw in Cold War tensions.

A year later, the Soviet Union collapsed and Russia opened up its economy to companies from the West. More than three decades later, however, it is one of a growing number of corporations pulling out.

"This is a complicated issue that's without precedent and with profound consequences," said McDonald's chief executive Chris Kempczinski in a message to staff and suppliers.

"Some might argue that providing access to food and continuing to employ tens of thousands of ordinary citizens, is surely the right thing to do," he added.

"But it is impossible to ignore the humanitarian crisis caused by the war in Ukraine. And it is impossible to imagine the Golden Arches representing the same hope and promise that led us to enter the Russian market 32 years ago."

McDonald's said it would sell all its sites to a local buyer and would begin the process of "de-arching" the restaurants which involves removing its name, branding and menu. It will retain its trademarks in Russia.

The chain said its priorities included seeking to ensure its 62,000 employees in Russia continued to be paid until any sale was completed and that they had "future employment with any potential buyer".

McDonald's said it would write off a charge of up to $1.4bn (£1.1bn) to cover the exit from its investment.

It really is the end of an era. I was in the queue when the first Russian McDonald's opened on Moscow's Pushkin Square in January 1990 - way back in the USSR.

There were so many people outside the restaurant, it took three hours to get inside. But what a sense of excitement.

Those American burgers, fries and pies were a symbol of Moscow embracing the West. Hot food to help end a Cold War.

These are very different times. Russia and the West have lost their appetite for one another.

Russia's attack on Ukraine has sparked international condemnation and sanctions, turning Moscow into a pariah.

Meanwhile, the Kremlin - as it always does - points the finger back, accusing the West of plotting Russia's downfall.

Back in March lots of international companies announced they were pausing operations in Russia, hoping the situation would resolve itself and they could then reopen.

But McDonald's decision to sell up and pull out shows the fast food giant recognises things will not return to normal and that what the Kremlin calls its "special military operation" in Ukraine has changed things long term.

Big Macs are only the beginning. I predict we're going to see a lot more global brands leaving Russia.

The move comes after Renault announced it was selling its business in the country. The French firm said its 68% stake in carmaker Avtovaz would be sold to a Russian science institute, while its shares in Renault Russia will go to the city of Moscow.

Moscow said Renault's Russian assets had now become state property - marking the first nationalisation of a major foreign business since the invasion of Ukraine.

Last year, Russia and Ukraine accounted for about 9% of McDonald's global sales.

The chain's 108 restaurants in Ukraine remain closed due to the conflict but the company is continuing to pay full salaries to all its employees there.

McDonald's initially faced criticism for being slow to halt its business in Russia, with some calling for a boycott of the company before it suspended operations in March.

Hundreds of international brands, including Starbucks, Coca Cola, Levi's and Apple, have left Russia or suspended sales there since the country invaded Ukraine in February.

Other firms, including Burger King and Marks and Spencer, say they are unable to close stores due to complex franchise deals.

The 14th Mongolia-UK Round Table Meeting took place on May 12, 2022, in Ulaanbaatar.

The delegation of Mongolia was headed by Minister of Education and Science L.Enkh-Amgalan while the delegation of the United Kingdom (UK) was headed by Minister of State for Asia and the Middle East at the Foreign, Commonwealth and Development Office Amanda Milling.

Ministers recalled that Mongolia and the UK established diplomatic relations in 1963. They welcomed the continued progress in the Mongolia-UK bilateral relationship, reaffirmed their commitment to broadening this further, and set out their desire to negotiate a Partnership and Cooperation Agreement, to coincide with the 60th anniversary of diplomatic relations in 2023.

Trade, Economic, and Investment cooperation

Ministers welcomed the inclusion of Mongolia in the UK's 'Enhanced Framework Trade Preference Arrangements from January 1, 2021, and expressed their intention to engage actively to facilitate bilateral trade and economic cooperation.

They also welcomed the recent first visit of the UK Prime Ministers' Trade Envoy to Mongolia Daniel Kawczynski, and the recent agreement between Rio Tinto and the Mongolian government on the commencement of the underground phase of the Oyu Tolgoi project.

They noted the importance of an attractive business and investment environment in Mongolia and welcomed ongoing work on investment protection, legal reform, and combatting corruption.

Ministers welcomed the long-standing relationship between the London Stock Exchange and the Mongolian Stock Exchange and looked forward to furthering collaboration between respective financial institutions.

Ministers welcomed ongoing collaboration between the National Geological Office of Mongolia and the British Geological Survey, as well as efforts to introduce advanced technologies, equipment, and best practice to the fields of geology, mining, and heavy industry of Mongolia.

Education and Science cooperation

Ministers agreed to promote cooperation aimed at improving the education and assessment systems of Mongolia and enhancing the training capacity and English language skills of teachers, including through inter alia the Cambridge programme, the Chevening partnership agreement, and the Global Partnership for Education.

Climate, Energy, and Environment cooperation

Ministers welcomed the historic climate agreement reached at COP26 in Glasgow, which keeps the 1.5C goal alive, as well as global action on coal, cars, cash, and trees, and new net-zero commitments covering 90% of the global economy.

In this regard, Ministers welcomed President U.Khurelsukh’s attendance at COP26 and his pledge to protect forests and plant a billion trees by 2030.

Ministers agreed on the importance of full implementation of Nationally Determined Contributions, as well as greening the energy sector and increasing the use of renewable energy sources. In this regard, they welcomed the prospect of cooperation on hydropower opportunities in Mongolia.

Ministers welcomed mutual action to support an ambitious Global Biodiversity Framework at COP15. They also welcomed existing cooperation in combating the Illegal Wildlife Trade, including the Zoological Society of London's UK-funded projects in Mongolia to support these efforts and in conservation.

Transport Cooperation

Ministers looked forward to renewing in the near future a bilateral Air Services Agreement, to support transport links between the two countries.

The Ministry of Foreign Affairs

A Concluding Statement describes the preliminary findings of IMF staff at the end of an official staff visit (or ‘mission’), in Mongolia.

Mongolia has been hit hard by global shocks and problems at both its borders. Despite the government’s laudable success in bringing the pandemic under control and opening Mongolia’s borders to international travel, China’s persistent border closures have disrupted Mongolia’s ability to export and reap the windfall from an improvement in export prices. Disruptions in food imports via Russia and from China, and other supply disruptions are also hurting economic activity and heightening food security risks, compounding the economic hardships posed by rising global fuel and food prices. Inflation has well exceeded the BOM target on account of these factors, and has accelerated since the war in Ukraine started. Weaker export volumes and rising imports due to higher prices and the unleashing of pent-up demand, have led to mounting FX pressures and dwindling international reserves.

The much-anticipated post-pandemic recovery will be delayed. The outlook is for stagflation. The economy is expected to expand at a modest 1 percent in 2022, instead of the 7 percent forecasted in November 2021, as longer-lasting Chinese border closures weigh on exports and domestic activity, and declining real wages hurt domestic consumption. Import disruptions from Russia and China are also likely to hurt activity. Inflation is expected to remain high at an average rate of 14½ percent in 2022, reflecting global price increases.

The outlook is uncertain and subject to significant downside risksstemming from commodity price volatility; extended Chinese border closures; an escalation of sanctions on Russia; tighter global financing conditions, and the risk of a pandemic resurgence. In the worst-case scenario, the economy could come to a near-standstill if disruptions in correspondent banking relations due to sanctions on Russia are not resolved in a timely manner.

The medium-term outlook remains favorable. If border disruptions and geopolitical shocks were to be resolved by end-year, Mongolia is well placed to reap an economic windfall from favorable commodity prices and from the Oyu Tolgoi underground mine production starting in 2023. An acceleration in growth to above 6 percent in 2023-25, and strong commodity prices could lift up external and budget balances.

A total of nearly five million animals have been vaccinated against the deadly foot-and-mouth disease (FMD) across Mongolia, according to the country’s General Authority for Veterinary Services (GAVS). FMD is a viral infectious disease that spreads among cloven-hoofed animals such as cattle, sheep and pigs.

“Almost five million cloven-hoofed animals such as cattle, pigs and reindeers have been vaccinated against FMD since Mongolia launched a month-long nationwide immunization campaign against the infectious disease on April 18.

Since the beginning of this year, over 356,800 cases of FMD have been registered in Mongolia.

Mongolia has developed a 2022-2028 strategy to fight FMD and keep livestock healthy, the GAVS said, adding that under the strategy, efforts will be intensified to support the immunity of animals susceptible to FMD. In particular, high-risk animals are expected to be vaccinated against the disease every six months.

The livestock sector is a main pillar of the Mongolian economy with nearly 70 million heads of livestock in the country as compared with its 3.4 million people. The landlocked country is striving to develop its livestock sector by raising meat exports in a bid to diversify its mining-dependent economy. However, frequent outbreaks of livestock animal diseases such as FMD and mad cow disease are impeding the process.

During her visit the Minister focused on areas of UK-Mongolia bilateral relations such as trade and investment, foreign policy issues, climate change and education.

Minister Milling also co-chaired the UK-Mongolia Roundtable Dialogue with the Mongolian Minister of Education and Science and the Foreign Policy Dialogue with the Deputy Foreign Minister. These covered a range of bilateral and international issues.

Minister Milling also met other Ministers and senior officials during her visit. She raised global issues, in particular the importance of international condemnation of Russia’s invasion of Ukraine. The Minister welcomed Mongolian humanitarian assistance to Ukraine and urged Mongolia to join the international community’s call to uphold the UN charter in Ukraine and press for an end to the violence. The Minister also discussed continued provocations by the Democratic People’s Republic of Korea (DPRK) and sought Mongolia’s views on international engagement with DPRK and deterring provocations.

Minister for Asia, Amanda Milling, said:

I was delighted to make my first visit to Mongolia as UK Minister for Asia.

I held productive discussions on a range of bilateral and international issues and look forward to strengthening our relationship with Mongolia even further.

Seeing the Oyu Tolgoi copper mine and the transformational impact of UK investment was a particular highlight.

The Minister also had the opportunity to pay a visit to the Oyu Tolgoi copper mine in the South Gobi. It is managed by the UK/Australian company Rio Tinto and is the largest investment by a UK company in Mongolia. The mine is the largest employer in Mongolia and a significant contributor to Mongolia’s development. The Minister was able to see the new underground phase and operations across the mine. It is set to be the 3rd largest copper mine in the world when fully on-stream, with amazing potential for UK investment and Mongolia.

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